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DOA-1.265
ARŠÍA TRUNK
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Enclosure No..
320
Hongkong & Shanghai Banking Corporation,
Hongkong.
15th October, 1925.
The Hon. The Colonial Secretary,
PRESENT.
To us, apart
Sir,
With reference to the enclosed memorandum of the
terms on which the Hongkong & Shanghai Banking Corpor- ation is prepared to make advances to the Government, I
would advise you that although the terms call for
the immediate deposit of one-third in silvers, and further
silver $ deposits if necessary, the Hongkong &
Shanghai Banking Corporation would be prepared to allow
the whole of the security to be held in London in Gold
Coin at present, and not call upon the Government to
provide the Silver $ deposit, unless it became necessary
forthe Hongkong and Shanghai Banking Corporation to
import further silver & in order to maintain the one-
third silver coin reserve, called for in terms of its
Ordinance, or the Management of the Hongkong & Shanghai Banking Corporation at any time consider circumstances
necessitate an augmentation of the Hongkong and Shanghai
Banking Corporation's Silver $ reserves.
As the increased note issue contingent on this
arrangement might embarrass the Hongkong & Shanghai Banking Corporation, should a heavy demand arise for Silver $ in exchange for notes, the Government on their part
to guarantee to take such measures as are necessary, either by making the notes issued by the Hongkong & Shanghai Banking Corporation legal tender, or by such other means as may be decided on, to obviate danger to the
Honghong & Shanghai Banking Corporation.
I am, atc
(sd) A.BARLOW,